Study: 1 in 5 consumers had error in credit reportBy MARCY GORDON
The Associated Press | February 12,2013WASHINGTON — One in five consumers had an error in a credit report issued by a major agency, according to a government study released Monday.
The Federal Trade Commission study also said that 5 percent of the consumers identified errors in their reports that could lead to them paying more for mortgages, auto loans or other financial products.
The study looked at reports for 1,001 consumers issued by the three major agencies — Equifax, Experian and TransUnion. The FTC hired researchers to help consumers identify potential errors.
The study closely matches the results of a yearlong investigation by The Columbus Dispatch. The Ohio newspaper’s report last year said that thousands of consumers were denied loans because of errors on their credit reports.
The FTC says the findings underline the importance of consumers checking their credit reports.
Consumers are entitled to a free copy of their credit report each year from each of the three reporting agencies.
The FTC study also found that 20 percent of consumers had an error that was corrected by a reporting agency after the consumer disputed it. About 10 percent of consumers had their credit score changed after a reporting agency corrected errors in their reports.
The Consumer Data Industry Association, which represents the credit reporting agencies and other data companies, said the FTC study showed that the proportion of credit reports with errors that could increase the rates consumers would pay was small.
The study confirmed “that credit reports are highly accurate, and play a critical role in facilitating access to fair and affordable consumer credit,” the association said in a statement.
In September, the federal Consumer Financial Protection Bureau gained the authority to write and enforce rules for the credit reporting industry and to monitor the compliance of the three agencies. Prior to that, the reporting agencies weren’t subject to ongoing monitoring by federal examiners.
The CFPB hasn’t yet taken any public action against the agencies. However, it is accepting complaints from consumers who discover incorrect information on their reports or have trouble getting mistakes corrected. The agencies have 15 days to respond to the complaints with a plan for fixing the problem; consumers can dispute that response.
By contrast, the FTC can only take action if there is an earlier indication of wrongdoing. It cannot demand information from or investigate companies that appear to be following the law.MORE IN National / World BusinessWASHINGTON — Raising beef for the American dinner table does far more damage to the environment... Full Story
- Most Popular
- Most Emailed
- TODAY'S WEATHER MINUTE: Rutland Herald content editor Rich Alcott shares local weather information and easily digestible news tidbits: When all the big mammals are rubbed out and a faint geologic memory, rats the size of human beings will stalk the Earth.
- TOMORROW'S HEADLINES TODAY: National survey ranks Vermont kids' well-being in second place, Springfield takes up anti-loitering ordinance, Rutland debate taxis, Fair Haven woman is arrested in Rutland for prostitution.
- TODAY'S WEATHER MINUTE: Rutland Herald content editor Rich Alcott shares local weather and news: Research scientists say schizophrenia and marijuana use linked. Are marijuana smokers schizophrenic or are schizophrenics more disposed toward marijuana use?
- RICHARD'S POOR ALMANACK: On this day in 365 CE, eastern Mediterranean rocked by high magnitude earthquake and tsunami, in 1865, Davis 'Little Dave' Tutt meets Wild Bill Hickock in Springfield, Mo., to settle differences.
- TODAY'S WEATHER MINUTE: Rutland Herald content editor Rich Alcott shares local weather information and easily digestible news tidbits: Pesticides in soil and ground water are killing not only honey bees and other useful insects, but songbirds as well.
- TOMORROW'S HEADLINES TODAY: Judge issues deposition order in for city police corporal's lawsuit against the department, market for marijuana-laced edibles en fuego in at least two states, West Rutland truck fire consumes all driver's earthly possessions.